10 Critical Decision areas of operation management Essay

I. Goods and service design. According to Henzer (2004), design of goods and design defines more of the duty period process. The factors of terms, feel and humane resources must be made during the stage. Operation counseling of product and run is also different because due to different singularity and tangible / intangible feature.II. Quality. Customer has a very high note standard nowadays and operation concern decision in quality must be clear and strict for its members to understand and comply. It must fix a quality, standard and operating procedure to meet nodes high expectation.III. change and capacity design. Manufacturing of material products may have higher importance on process and capacity design than services operation. Operation management (product) should root what process it, what type of engineering science and to what extent, human resources, quality and maintenance that determines its canonical cost structure. Services operation decision on this ara is much simpler and it can determine by customers who directly involved in the process. For example, customer will ask tailor to design specific fashion clothes. contentedness design issue is critical for services because it will try to abbreviate waiting time and avoid lost of sales due to low capacity. For manufacturing capacity design is based on firms financial capability, forecast for forthcoming and market make.IV. Location can be an area for operation management to decide and with globalization of business, operation managers too must think global. For physical goods, location selection can be determined by pools of qualify human resources, technology, raw material, access to market and government polity. For services as it is direct to customers, the location is determined by market accessibility or near to customer as possible.V. Layout design. Material flow, process selection technology used, capacity needs, workers needs, inventory requirement, and capital will in fluence thedecision for layout design. For services such as hotels, beside capacity needs layout also will provoke its attributes and features to the customers.VI. Human Resources and Job Design Employees is the integral part in the app close system design. Operation management must set a policy to set labor standards to ease transition of skills, improvement of knowledge, skills and abilities (KSA), build a balance work and life quality in an effective cost target. For services one extra area operation management should touch, which is customers blood that they are dealing directly.VII. Supply Chain Management Decisions that have to shoot down place of what to ready, what material to buy, from where, how is the cost and how is the delivery from supplier to the final end customers in on-time delivery and minimum cost possible. It is more critical in merchandise of goods than services.VIII. Inventory Decisions on how and where the inventory level to keep farsighted term cus tomers satisfaction, suppliers, material availability for not to disrupt the production, human resources needful for this purpose and important the holding cost from financial perspective. Goods production are more concern because manufacturer may kept raw material, in progress work order and final goods while services is not critical as it is directly produce and consume simultaneously.IX. Scheduling good way of allocation, control and management of materials, capital goods and human resources to efficiently produce the final goods from the input available. Schedules are more formal in goods production with short, medium and long term planning to accommodate customers demand. For services the demand is more direct and volatile and often concern on human resources and KSA availability to meet current customers needs.X. Maintenance Decision must be made regarding the desired level of reliability, stability and systems must be complete by management to maintain that reliability a nd stability.